Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,858,000 $1,978,888 713, eee 1,333, eee 345, eee 645,000 296,750 341,750 $ 48,250 $ 383, 250 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2018 2019 33,000 33,000 23,000 43,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($330,000/33,000 units) Total product cost per unit $ 4 9 8 10 $31 C. Selling and administrative expenses consist of the following Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2018 2019 $ 51,750 S 96.750 245, eee 245.000 $296,750 5341, 750 1. Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2018 2019 Sales 1,058.000 $ 1,978,000 Los: Variable cous Direct mattis Direct labor Variable overhead Variable selling and administrative expenses 207.000 387 000 207.000 387.000 Total variable costs Contribution margin Lees: Fixed expenses 207,000 387,000 Direct materials Direct labor Variable overhead Variable selling and administrative expenses 207,000 387,000 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead Net income (loss)